Pp Ch002

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  • Pp Ch002

    1. 2. BUILDING PARTNERING RELATIONSHIPS <ul><li>What different types of relationships exist between buyers and sellers? </li></ul><ul><li>When is each type of relationship appropriate? </li></ul><ul><li>What are the characteristics of successful partnerships? </li></ul><ul><li>What are the benefits and risks in partnering relationships? </li></ul><ul><li>How do relationships develop over time? </li></ul><ul><li>What are the responsibilities of salespeople in partnerships? </li></ul>SOME QUESTIONS ANSWERED IN THIS CHAPTER ARE: 2- McGraw-Hill/Irwin chapter 2
    2. 3. <ul><li>“ Clients want to know that you have the ability to relate to them on a personal level and that earning your commission is not the most important factor driving your willingness to work with them.” </li></ul><ul><li>~John L. Peteet Metropolitan Realty </li></ul>2- McGraw-Hill/Irwin
    3. 4. The Evolution of Personal Selling <ul><li>Buying on the Internet </li></ul><ul><li>Buyers have needs that are met by: </li></ul><ul><ul><li>The product </li></ul></ul><ul><ul><li>The selling process </li></ul></ul><ul><li>Buyers buy to also make a profit </li></ul><ul><li>Salespeople orientations </li></ul><ul><ul><li>Partnering orientation </li></ul></ul>2- McGraw-Hill/Irwin Value = selling price – (cost + time and effort)
    4. 5. The Evolution of Personal Selling 2- McGraw-Hill/Irwin
    5. 6. Relationships and Selling <ul><li>Relationship marketing </li></ul><ul><li>Loyalty </li></ul><ul><ul><li>Behavioral </li></ul></ul><ul><ul><li>Attitudinal </li></ul></ul><ul><li>Lifetime customer value </li></ul>2- McGraw-Hill/Irwin Behavioral loyalty refers to the purchase of the same product from the same vendor over time. Attitudinal loyalty is an emotional attachment to a brand, company, or salesperson.
    6. 7. <ul><li>Solo exchanges </li></ul><ul><ul><li>No future business </li></ul></ul><ul><ul><li>Both parties pursue their own self interest </li></ul></ul><ul><li>Functional relationships </li></ul><ul><ul><li>Long-term market exchanges </li></ul></ul><ul><ul><li>Behavior loyalty </li></ul></ul><ul><ul><li>Previous purchase influences next purchase </li></ul></ul>Market Exchanges 2- McGraw-Hill/Irwin
    7. 8. <ul><li>Relational partnerships </li></ul><ul><ul><li>Buyer and seller have a close personal relationship </li></ul></ul><ul><ul><li>Buyer and seller work together to solve problems </li></ul></ul><ul><ul><li>Trust </li></ul></ul><ul><li>Strategic partnerships </li></ul><ul><ul><li>Long-term relationships </li></ul></ul><ul><ul><li>Partner organizations make significant investments to improve the profitability of both parties </li></ul></ul><ul><ul><li>Uncover and exploit joint opportunities </li></ul></ul>Partnerships 2- McGraw-Hill/Irwin
    8. 9. Types of Relationships Between Buyers and Sellers 2- McGraw-Hill/Irwin
    9. 10. <ul><li>Making contact </li></ul><ul><ul><li>Find someone to listen </li></ul></ul><ul><ul><li>Make small talk </li></ul></ul><ul><ul><li>Ingratiate and build support </li></ul></ul>Market Exchange Selling 2- McGraw-Hill/Irwin Goal: Making a sale
    10. 11. <ul><li>Closing the sale – deliver a sales pitch to: </li></ul><ul><ul><li>Get the prospect’s attention </li></ul></ul><ul><ul><li>Create interest </li></ul></ul><ul><ul><li>Build desire </li></ul></ul><ul><ul><li>Get the prospect to take action </li></ul></ul><ul><ul><li>Stay alert for closing signals </li></ul></ul><ul><ul><li>Use trial closes </li></ul></ul><ul><ul><li>Overcome objections </li></ul></ul><ul><ul><li>Close early and often </li></ul></ul>Market Exchange Selling (continued) 2- McGraw-Hill/Irwin Goal: Making a sale
    11. 12. <ul><li>Following through </li></ul><ul><ul><li>Reestablish contact </li></ul></ul><ul><ul><li>Resell self, company, and products </li></ul></ul>Market Exchange Selling (continued) 2- McGraw-Hill/Irwin Goal: Making a sale
    12. 13. <ul><li>Initiating the relationship </li></ul><ul><ul><li>Engage in strategic prospecting and qualifying </li></ul></ul><ul><ul><li>Gather and study precall information </li></ul></ul><ul><ul><li>Identify buying influences </li></ul></ul><ul><ul><li>Plan the initial sales call </li></ul></ul><ul><ul><li>Demonstrate an understanding of the customer’s needs </li></ul></ul><ul><ul><li>Identify opportunities to build a relationship </li></ul></ul><ul><ul><li>Illustrate the value of a relationship with the customer </li></ul></ul>Long-Term Relationship Selling 2- McGraw-Hill/Irwin Goal: Building trust
    13. 14. <ul><li>Developing the relationship </li></ul><ul><ul><li>Select an appropriate offering </li></ul></ul><ul><ul><li>Customize the relationship </li></ul></ul><ul><ul><li>Link the solution to the customer’s needs </li></ul></ul><ul><ul><li>Discuss customer concerns </li></ul></ul><ul><ul><li>Summarize the solution to confirm benefits </li></ul></ul><ul><ul><li>Secure commitment </li></ul></ul>Long-Term Relationship Selling (continued) 2- McGraw-Hill/Irwin Goal: Building trust
    14. 15. <ul><li>Enhancing the relationship </li></ul><ul><ul><li>Assess customer satisfaction </li></ul></ul><ul><ul><li>Take actions to ensure satisfaction </li></ul></ul><ul><ul><li>Maintain open, two-way communications </li></ul></ul><ul><ul><li>Expand collaborative involvement </li></ul></ul><ul><ul><li>Work to add value and enhance mutual opportunities </li></ul></ul>Long-Term Relationship Selling (continued) 2- McGraw-Hill/Irwin Goal: Building trust
    15. 16. Foundations of Successful Relationships 2- McGraw-Hill/Irwin
    16. 17. <ul><li>Dependability </li></ul><ul><ul><li>Living up to promises made </li></ul></ul><ul><li>Competence </li></ul><ul><ul><li>Demonstrated knowledge of the customer, the product, the industry and the competition </li></ul></ul>Characteristics of Successful Partnerships – Mutual Trust 2- McGraw-Hill/Irwin Trust is a belief by one party that the other party will fulfill its obligations in a relationship.
    17. 18. <ul><li>Customer orientation </li></ul><ul><ul><li>Put customer needs first </li></ul></ul><ul><li>Honesty </li></ul><ul><ul><li>Truthfulness, sincerity, being candid </li></ul></ul><ul><li>Likeability </li></ul><ul><ul><li>Least important component of trust </li></ul></ul>Characteristics of Successful Partnerships – Mutual Trust (continued) 2- McGraw-Hill/Irwin
    18. 19. <ul><li>Key building block for building successful relationships </li></ul><ul><li>Listen, listen, listen </li></ul><ul><li>Very important when there is conflict </li></ul><ul><li>Type of partnerships determines openness of communication </li></ul><ul><li>Be aware of cultural differences </li></ul>Characteristics of Successful Partnerships – Open Communication 2- McGraw-Hill/Irwin
    19. 20. <ul><li>Key to a successful relationship </li></ul><ul><li>Helps partners focus on opportunities </li></ul><ul><li>Helps sustain the partnership </li></ul><ul><li>Measurable goals are critical </li></ul>Characteristics of Successful Partnerships – Common Goals 2- McGraw-Hill/Irwin
    20. 21. <ul><li>Commitment to mutual gain </li></ul><ul><ul><li>Mutual investment </li></ul></ul><ul><li>Organizational support </li></ul><ul><ul><li>Structure and culture </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Rewards </li></ul></ul>Characteristics of Successful Partnerships (continued) 2- McGraw-Hill/Irwin
    21. 22. <ul><li>Awareness </li></ul><ul><ul><li>Salespeople locate and qualify prospects; buyers identify sources of supply </li></ul></ul><ul><li>Exploration </li></ul><ul><ul><li>Both parties may explore the potential benefits and costs of a partnership </li></ul></ul>Phases of Relationship Development 2- McGraw-Hill/Irwin Supplier relationship management (SRM) is the use of technology and statistics to identify important suppliers and opportunities for cost reduction, greater efficiency, and other benefits.
    22. 23. <ul><li>Expansion </li></ul><ul><ul><li>Both parties investigate the benefits of a long-term relationship </li></ul></ul><ul><li>Commitment </li></ul><ul><ul><li>The customer and seller pledge to continue the relationship for a period of time </li></ul></ul><ul><li>Dissolution </li></ul><ul><ul><li>Process of terminating the relationship </li></ul></ul>Phases of Relationship Development (continued) 2- McGraw-Hill/Irwin
    23. 24. Choosing the Right Relationship <ul><li>Size </li></ul><ul><li>Access and image </li></ul><ul><li>Access to innovation </li></ul>2- McGraw-Hill/Irwin
    24. 25. Using Technology to Increase Efficiency <ul><li>Using technology to drive two key areas of salesperson performance </li></ul><ul><ul><li>Knowledge management technology </li></ul></ul><ul><ul><li>Relational management technology </li></ul></ul><ul><li>Create direct links with customers and suppliers </li></ul>2- McGraw-Hill/Irwin
    25. 26. <ul><li>Businesses are moving toward partnering strategies. </li></ul><ul><li>Functional relationships and strategic partnerships are characterized by a mutual concern of each party for the long-run welfare of the other party. </li></ul><ul><li>Mutual trust, open communication, common goals, a commitment to mutual gain, and organizational support are key ingredients in successful relationships. </li></ul><ul><li>Customers trust salespeople who are dependable, capable, and concerned about the customer’s welfare. </li></ul>Summary 2- McGraw-Hill/Irwin

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